Question: Stephanie's Furniture Store buys a chair at a wholesale price of $118.00. If the markup rate at Stephanie's Furniture Store is 60%, what is the total markup for the chair in dollars?
Solution: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $60\%$ is equivalent to $\frac{60}{100}$ which is also equal to $60 \div 100$ $60 \div 100 = 0.60$ Now you have all the information you need to use the formula above! $0.60$ $\times$ $$118.00$ $=$ $$70.80$ The amount of markup on the chair is $$70.80$.